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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (34913)	3/20/2001 8:19:47 PM
From: Poet	Respond to of 35685

Very interesting reading, Allan. I've often wondered about the differences in spending patterns of the more wealthy versus the less wealthy, and how a tax cut that favors one or the other would trickle into the economy. And then there's this, for all us "investor types": Isn't one of the reasons for our current economic malaise too much prior investment spending? No, the problem is not overinvestment but malinvestment. By the Federal Reserve holding the structure of interest rates below its "natural" equilibrium in 1997 and 1998, it induced a lot of business investment that would prove to be unprofitable once the structure of interest rates moved back toward its equilibrium level, which it did in 1999 and 2000. Profitable investment opportunities in the Internet and telecommunications at an equilibrium level of the interest rate structure are few and far between. In contrast, profitable investment opportunities abound in the areas of natural gas production and distribution.